Life/career decision to make
Alright, so my father built his own construction/ general contracting company from the ground up over 20 years. It used to be a 15MM+ a year company but ended up doing a job that almost cost him and my family everything. everything ended up fine but the company pretty much stopped. He's now a Senior VP at a large construction company starting his own office for the firm in the city we live in. He has mentioned that I should try and get his old company running again seeing that its reputation is pretty well known and he has years of knowledge and contacts. For some reason im hesitant, idk if I dont find an interest in the work or what, but the idea of closing deals and shit like that for a repe shop sounds a lot more exciting to me. Would love to hear some thoughts.
If he's willing to financially sponsor you while starting it back up, I would absolutely do it. You'll gain great experience at the very least.
If you're a VP at an REPE firm where you'll get carry in deals, eat what you kill, etc. then sure, I'd probably put them as equivalent. But if you're analyst/associate level you'll learn more running the construction company about how to build a project/be successful in real estate than you will piddling in spread sheets, pulling all nighters to get the pages in a pitch deck just right. Your dad sounds like he's basically offering you a short cut to doing your own deals, I'd take it. If you don't want to do it, put me in contact with your dad and we can go into business together.
Definitely agree, I've been working with him over the years on various small projects that people have asked him to do (remediation's, maintenance, other construction stuff) but nothing of significance. Now that I just graduated I want to get it going but head it in the direction of development / industrial construction. We just got a few deals to build someones home and a small warehouse, in the southeast.
Good for you, that's a great start. I hope if works out for you.
My question is why wouldn’t the two of you be starting it up together? Feels weird that your father would want you to do it vs. doing it himself?
We would be but he's also a VP at a large firm right now so he cant do both.
So everyone here is focused on: “oh, great, quicker path to success, do it!” And other thoughts like that. Sure, you could think like that. But I think the real question, which you alluded to, is what do you want to do and what are you interested in? If you have zero desire to be in the construction business, you probably won’t be successful in starting his company and won’t enjoy it. You’re 22. Go try what you want to try, see what you think. Do what you enjoy. You can be successful in both.
Honestly, this sounds like what your dad wants for you, not your rabid ambition. Frankly, you would be doing this via and through your dad (who may be creating conflicts of interest at his job, especially if he is introducing you to business). If you wanted to be in business with him and in this field, then sure, I guess worth considering. But given the context and your statement on "hesitancy", this really doesn't feel right tbh.
You already know your answer.
If your interest isn't there, then it will show when you meet with prospective vendors & subs. That permeation can create a toxic environment down the line as the jobs get larger in scope or volume gets greater. It might be okay with smaller jobs, but once you get a large job that will test your fortitude when shit hits the fan, you're fucked if the passion isn't there. My vote would be to pursue what YOU really want to do and use this as a fallback plan.
It will be easier to learn underwriting in the future vs learning construction. If you eventually decide you do want to work at a PE fund instead, you can get an MBA to open that door back up.
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